Microsoft's bid to acquire Activision Blizzard has been met with resistance from the UK's Competition and Markets Authority (CMA), which has blocked the $68.7 billion deal. The CMA cited concerns for the future of cloud gaming, stating that the acquisition could give Microsoft a monopoly on the industry, which would limit competition and innovation.
This decision comes after Microsoft's bid cleared a major hurdle when it received approval from the CMA in the UK. However, the regulatory body has now prevented the acquisition from going ahead due to fears that it would alter the future of the fast-growing cloud gaming industry.
The UK's antitrust regulator had previously approved large acquisitions by Microsoft, including its $7.5 billion purchase of ZeniMax Media in 2020. However, the acquisition of Activision Blizzard is different, as it would give Microsoft a significant share of the gaming market and potentially limit competition.
The British government has also opposed the acquisition of Activision Blizzard over fears that it would give Microsoft a monopoly on cloud gaming. The UK is one of the largest markets for gaming, and the government is keen to ensure that there is competition in the industry to encourage innovation and growth.
In response to the CMA's decision, Microsoft has proposed solutions to address the concerns raised by the regulatory body. However, these solutions have failed to effectively address the concerns, and the CMA has maintained its opposition to the acquisition.
Despite the obstacles presented by the CMA, Microsoft is still making plans to complete its $69 billion acquisition of Activision Blizzard. However, the ongoing deal now faces rejection from the regulatory body, causing a major setback for Call of Duty to appear on Xbox Game Pass.
The CMA's rejection of the deal is a blow to Microsoft, which is looking to expand its gaming business through the acquisition of Activision Blizzard. Call of Duty is one of the most popular gaming franchises in the world, and its inclusion on Xbox Game Pass would have given Microsoft a significant advantage in the gaming market.
The UK Competition and Markets Authority has stated that it is committed to ensuring that the gaming industry remains competitive and innovative. The regulatory body will continue to monitor the situation and take action if necessary to protect the interests of consumers and the industry as a whole.
In conclusion, Microsoft's bid to acquire Activision Blizzard has faced opposition from the UK's Competition and Markets Authority. The regulatory body has cited concerns for the future of cloud gaming, and its rejection of the deal is a setback for Microsoft's gaming business. The ongoing situation highlights the importance of competition and innovation in the gaming industry, and the need for regulatory bodies to monitor and take action to protect the interests of consumers and the industry as a whole.
